HiAlpha Mining Investment Conference November 28, 2012

HiAlpha Mining Investment Conference

November 28, 2012

Gregory T. Weldon www.weldononline.com

Monetary Armageddon:The Impact on Gold & Commodities

Agenda

Monetary Armageddon& Global Debt Crisis

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United States of AmericaEuropean Union

Japan

China

Gold & Silver

The Golden Road … Monetary Armageddon

Federal Reserve Balance Sheet

Pace of Expansion in Fed’s Holding of Assets

Fed’s Holdings of US Treasury Securities

US Government Debt Has Nearly DOUBLED Since May-2007

There is NO Fiscal Austerity in the USWhile Dependence of Foreign Buying of US Debt Continues

Maturing UST and Interest Payments in 2013 Alone Equals $2,651,577,000.00

US Government Borrowing From Public Has Risen to MORE than $1 Trillion Annually

Secular Crisis in US Labor Market

New Post-Gold-Standard-Era LOW in US Hourly Earnings

Deflation in Real Income … Worsening

‘Real’ US Short-Term ‘Funding Rates’ Negative, And, More Importantly … Falling Again

Gold Spikes Amid Collapse in ‘Real’ Fed Funds Rate

Gold Spikes Again on QE-II, and Decline in ‘Real’ Rates

Fed Suspends QE, Real Rates Rise, Gold Falls …… Fed Announces QE-III, Real Rates Fall, Gold Rises

Agenda

Monetary Armageddon& Global Debt Crisis

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United States of AmericaEuropean Union

Japan

China

Gold & Silver

European Central Bank Balance Sheet

ECB Talking-the-Monetary-Talk ……. But No Longer Walking-the-Monetary-Walk

Talking-the-Monetary-Talk Paid-Off in a BIG Way …… But, without the Monetary-Walk, Volatility Could Explode

European Debt Maturing in 2013

Total Debt $1.6 Trillion$439B

$369B

$313B

$219B

$92B$74B

$37B $33B $32B

Private Demand for Government Debt in Secular Downtrend

Gold Priced in EUR

Agenda

Monetary Armageddon& Global Debt Crisis

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United States of AmericaEuropean Union

Japan

China

Gold & Silver

Bank of Japan Balance Sheet – Securities Held Outright

Projected BOJ Securities Holdings Based on Asset Purchase Program

Japanese Government Debt Tsunami

USD <vs> Yen … Trend Towards Yen Depreciation

Gold Priced in Yen

Agenda

Monetary Armageddon& Global Debt Crisis

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United States of AmericaEuropean Union

Japan

China

Gold & Silver

Chinese Macro-Monetary – ‘Properly Aligned’ ??

Real Rates Rising and Breaking Out, PBOC Playing ‘Tight’

Foreign Exchange Market Focused on Chinese ‘Tightness’, MORE SO than Fed Easing

Movement of Gold ‘Priced-in’ CNY Will Be ‘Telling’

Agenda

Monetary Armageddon& Global Debt Crisis

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United States of AmericaEuropean Union

Japan

China

Gold & Silver

Silver Bidding to Breakout

Silver Setting-Up to Outperform Gold ??

Central Banks Remain Sizable Buyers of Gold

Central Banks Buyers of Gold Below $1575Market Rallies and Breaks Out in August

Current Short-Term Technical Set-Up is Positive

World Gold Council 3Q Report: Jewelry Demand Lower, Except in India & Turkey, Two Countries With Depreciation in FX

Indian Jewelry Demand Up … Chinese Demand Down … … Amid Completely Divergent Trends in Their Currencies

Gold Priced in Indian Rupee Soars to New Record High

Gold Breaking Out Relative to US Stock Market

‘Reflation’ in Equity Prices is Not Based on ‘Macro-Reality’, But Rather, on ‘Debasement’ Within Fiscal and Monetary Policy

Gold … What’s Next?\

Is Gold Under-Valued ??? …

… Fairly Value ??? …

… or Over-Valued ???

Weldon Financial

www.weldononline.com

Research Publications Weldon’s Money Monitor (Global Macro)

Money Monitor TradeLab (Specific Trading Ideas)The Metal Monitor (Precious Metals)

Free Trial SubscriptionUse HiAlpha as Referral for Extended Trial

Investment Opportunities – Managed AccountsGlobal Macro-Discretionary Program

Long-Short Non-Leveraged Commodity ProgramMetals Only Program (Lowest Minimum Investment)

[email protected]@weldononline.com